MiMedx Investors Get Initial OK For Fraud Deal, $3.5M In Fees
Law360 (October 9, 2020, 7:27 PM EDT) -- A Georgia federal judge has given preliminary approval to a derivative settlement that would require new controls at MiMedx Group Inc. and pay $3.5 million to plaintiffs' counsel to resolve shareholders' allegations that the biotech company's executives engaged in a yearslong scheme to inflate revenue.
U.S. District Judge William M. Ray II gave the initial green light Thursday to settle a federal suit and two related shareholder derivative actions pending in Florida and Georgia state courts that alleged the executives amplified revenue in a so-called channel-stuffing scheme.
The derivative settlement requires MiMedx's board of directors to implement numerous corporate governance reforms to...
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